Pound Sterling slipped after hot US CPI with PPI still ahead

💡 DMK Insight

GBP/USD’s drop to 1.3500 is a critical moment for traders to watch. The pair’s failure to hold above 1.3650 suggests a shift in sentiment, possibly driven by broader economic indicators or geopolitical tensions. A breach below 1.3500 could trigger further selling, opening the door to a test of lower support levels. Traders should keep an eye on upcoming economic data releases, particularly from the UK, as these could influence the pair’s direction. If the pair rebounds, watch for resistance around 1.3650, which could serve as a key level for short-term trades. On the flip side, if the market sentiment shifts due to unexpected news, we might see a quick reversal. It’s worth noting that the recent volatility could attract both retail and institutional players, leading to increased trading volume around these levels. Keep an eye on the daily chart for any signs of consolidation or reversal patterns that could signal the next move.